10 Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $117,840. The seller agreed to allow a 4.75 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,160. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $1,240. The loader operator is paid an annual salary of $35,740. The cost of the company's theft insurance policy increased by $2,380 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $10,700. eBook Hint Required Determine the amount to be capitalized in the asset account for the purchase of the front-end loader. (Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign.) Ask Print Costs that are to be capitalized: List price Total costs

10 Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $117,840. The seller agreed to allow a 4.75 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,160. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $1,240. The loader operator is paid an annual salary of $35,740. The cost of the company's theft insurance policy increased by $2,380 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $10,700. eBook Hint Required Determine the amount to be capitalized in the asset account for the purchase of the front-end loader. (Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign.) Ask Print Costs that are to be capitalized: List price Total costs

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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